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Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now desires to buy Riggs Bank, this is certainly embroiled in a money laundering scandal involving, as well as others, Pinochet of Chile, the oil dictator of Equatorial Guinea, even though the Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application for regulatory approval, covered (begrudgingly) in to the Pittsburgh Post-Gazette along with greater degree on Inner City Press / Fair Finance Watch Files Challenges to PNC’s Applications to Acquire Scandal-Plagued Riggs Corporation that is nationwide the Federal Reserve and OCC, dedicated to Unresolved Riggs problems, PNC’s Lending Disparities and PNCs Funding of Predatory Payday Lenders

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/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group to obtain the Riggs that is scandal-plagued nationwide. The acquisition that is proposed for $779 million, wound up being established on July 16; now a charge card applicatoin for regulatory is pending during the Federal Reserve Board, the approval of the workplace related to Comptroller in connection with Currency are often required. ICP’s remarks, filed making use online payday loans California of the FRB and OCC, contain proof that PNC funds lenders which are payday as Check n Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNCs peer SunTrusts 12, 2004 a reaction to ICPs comments, that SunTrust will no further investment payday loan providers july. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”

ICPs remarks utilize recently-released 2003 mortgage funding information to show that PNC disproportionately excludes African usa and Latino applicants through the funding. ICP’s responses assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and show as an instance that inside the Newark, NJ Metropolitan Statistical area (MSA), for traditional home purchase loans, PNC Bank N.A. in 2003 denied loan needs from Latinos 4.71 times with greater regularity than applications from whites. PNCs disparity for African people in america had been incalculable in 2003: PNC made no home that is old-fashioned loans to African us residents in 2003 in the MSA of Newark, NJ.

PNC claims to help with making up due to its maybe not sufficient home purchase funding to individuals of color along using its get it done your self funding. In the Newark MSA in 2003 with this specific type of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times with greater regularity than whites, and rejected African People in the usa 2.84 times with greater regularity than whites. Having its household MSA of Pittsburgh, PNC Bank NA in 2003 denied the house that is traditional applications of African people in the usa 4.62 times more frequently when compared with those of whites. Yet again, PNCs not sufficient household purchase financing to people of color was not composed for your house improvement funding: in to the Pittsburgh MSA in 2003 due to this form of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more frequently than whites, and rejected African People in america 2.43 times with greater regularity than whites.

PNC Bank N.A. has 100% denial costs for African Us americans applications for get it done your self loans in to the Jersey City NJ and Newburg, brand name} brand name name|brand name} groundbreaking York MSAs in 2003. It was hardly better with its household state of Pennsylvania. The Harrisburg MSA, PNC Bank N.A. for house enhancement loans rejected the applications of Latinos 3.28 times more often than whites, and denied the applications of African People in america 2.93 times with greater regularity than whites within the state money. Whenever you glance at the Philadelphia MSA, for refinance loans, PNC Bank N.A. denied the applications of Latinos 2.45 times more regularly than whites, and denied the applications of African Us americans 2.64 times more frequently than whites. In this Philadelphia MSA for take action your self loans, PNC Bank N.A. denied the applications of Latinos 2.72 times more frequently than whites, and denied the applications of African Us americans 3.06 times more frequently than whites.

PNC’s other bank, PNC Bank Delaware, in 2003 in to the Wilmington DE MSA for main-stream household purchase loans rejected 100% connected with applications it received from Latinos. For refinance loans in this MSA, PNC Bank Delaware denied the applications of Latinos 2.93 times more regularly than whites, and denied the applications of African Us americans 2.02 times with greater regularity than whites. For take action your self loans in this MSA, PNC Bank Delaware denied the applications of Latinos 2.73 times with greater regularity than whites, and denied the applications of African Us americans 2.22 times with greater regularity than whites.

ICP’s remarks declare that, provided these funding disparities, with this specific ground alone the public that is general be ill-served by allowing PNC to have Riggs and its branches. Also to be regarded, including during the requested hearing, is dilemma of reductions in solution, which occurred, including via branch closings, after PNC – United. The Washington Post of July 26, 2004, reported: “Brian Goerke, a spokesman for PNC, reported the corporation will initially run all 51 Riggs branches. Lasting alternatives about historic structures just like the Corcoran branch. have actuallyn’t been made, he claimed.” The usa Banker newsprint of 19, 2004, reported that “executives recommended that about 50per cent of Riggs’ 1,400 workers should be cut. july” Staff cuts of 50% is going to be inconsistent with consumer solution, and workout a comparison this is certainly troubling the windfall anticipated by those in charge of Riggs’ techniques. August the Washington Post of 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000. Nine other officers that are executive get a total of $4 million.” ICP has requesting general average man or woman hearings using this ground and specially on PNC’s funding of problematic payday lenders. As documented due to the Uniform Commercial Code filings ICP has submitted and acquired, PNC funds and enables for instance: